General Electric merge oil and gas ops with Baker Hughes

General Electric banking on a recovery in oil prices, said on Monday it would incorporate its oil and gas business with No. 3 oilfield services provider Baker Hughes. The deal is priced to be 30 billion dollars.

GE will own 62.5% of the new publicly traded company, which will have combined revenue of $32 billion, while Baker Hughes shareholders will own 37.5%.The combination of GE Oil & Gas and Baker Hughes will create the second-largest player in the oilfield services industry in terms of revenue after Schlumberger. The deal is expected to be officially announced today.

“Oil and gas customers demand more productive solutions. This can only be achieved through technical innovation and service execution, the hallmarks of GE and Baker Hughes.”

-GE Chief Executive Jeff Immelt said in a statement.

Earlier this year in may Baker Hughs made an attempt to merge with the rival Halliburton Co, but the USA regulator didn’t allow it.